Kelso Technologies Inc.
TSX VENTURE : KLS

Kelso Technologies Inc.

July 20, 2011 13:44 ET

Kelso Technologies Inc.: Manway Assembly Plant Established in Bonham, Texas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2011) - Kelso Technologies Inc. (TSX VENTURE:KLS) -

The Company and its wholly owned subsidiary Kelso Technologies (USA) Inc. are pleased to report the that the first stage of its strategic plan to produce its "Klincher™" Manway Securement Systems ("MSS") for commercial sales and distribution has commenced. Kelso established its first assembly plant for MSS with the purchase of a 6,000 square foot building in Bonham, Texas for US$129,000.

The Company has begun human resources recruitment and the development of an initial supply chain for cast and fabricated components. Inventory management systems and assembly operations are being designed and installed. The goal is to build initial production capacity to 1,800 to 3,000 MSS units per year from all sources. The first MSS units are expected to be available for market in late 2011.

The Company is working with a number of key customers on infrastructure strategies that will determine rates of adoption for the MSS. The MSS is a revolutionary technology change for the railroad industry where the return on investment and arguments for customers' adoption of the MSS are compelling. They include:

  • MSS bolt and strap design eliminates eye-bolt securement problems and possible leaks due to crushed gaskets hence reducing frequency of expensive regulatory fines.
  • Eliminates lid deformation and nozzle distortion due to the over-torque of eye-bolts.
  • Eliminates relaxation of gaskets under eye-bolt location.
  • Eliminates eye-bolt nuts loosening in transit due to vibration and improper cross-bolting technique.
  • MSS uses standard AAR-approved gasket retention method with currently used hard and soft gaskets.
  • ACME Thread on T-Bolt on MSS virtually eliminates loosening due to vibration.
  • Rigid collar at top of nozzle reduces risk of nozzle or lid distortion.
  • MSS provides fast opening and closing operation with one bolt management system.
  • Uniform load on the gasket provided by the MSS design prolongs gasket life.
  • MSS Reduces possible release of hazardous commodity in a roll-over accident by moving threaded closing mechanism below the plane of the lid.
  • Ease of operation with lightweight domed lid that can be further enhanced with a Kelso Lift Assistor.
  • There are no eye-bolts to kick at tank car inspection.

There are two key markets currently under development. The first is the OEM market for new tank car production whose design and production cycle can run up to 36 months. The second is the retrofit and repair market that can be developed within the next six months.

When adoption rates can be predicted with better certainty there are two acres of land adjacent to the Bonham building on which to build a new 20,000 to 40,000 square foot assembly facility customized to our needs to expand production capacity up to 12,000 units per year when needed. The Bonham Industrial Foundation Inc has offered to build this facility to our requirements in early 2012 and the Company has agreed to lease it once completed.

Bonham Mayor Roy Floyd announced that, "The City of Bonham and the Bonham Industrial Foundation are happy Kelso has chosen to purchase property and put down roots in our community. Bonham has pledged co-operation anyway possible to make Kelso's Bonham plant both productive and profitable. Bonham thanks Kelso for employment opportunities for our city. We are very proud of this new industry."

About Kelso Technologies

Kelso is dedicated to becoming the dominate leader in the design and supply of new innovative technologies aimed at the safe containment of hazardous materials in transportation systems with the primary goal of generating above average benefits for the environment, society, customers, industry work forces and our stakeholders worldwide.

The Company designs, engineers; markets, sells, produces and distributes a series of industrial products based on our patented technologies including constant force pressure relief valves and a new unique MSS that are designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars in North America.

Kelso is focused on the full scale commercial marketing and distribution of its proprietary technologies. With the economic recovery in North America, the enforcement of US and Canadian environmental regulations for shippers of chemical commodities and the adverse effects of wear and tear on existing railroad fleets management expects that the railroad industry will rebound significantly. Management is confident that its corporate reorganization in 2010 laid the foundation from which to pursue a meaningful revenue stream from a market made up of over 700 new tank-car builders, major chemical shippers, repair shops and retrofitters. The Company will update, by way of news releases, progress reports in the future.

For a more complete business and financial profile of the Company, management encourages interested parties to view the Company's website at www.kelsotech.com and public documents posted on www.sedar.com.

On behalf of the Board of Directors

James R. Bond, CEO and President

Legal Notice Regarding Forward Looking Statements: This news release contains "forward-looking statements within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that we will build initial production capacity to 1,800 to 3,000 MSS units per year from all sources, that the first MSS units are expected to be available for market in late 2011, that we will have built and lease a new 20,000 to 40,000 square foot assembly facility customized to our needs to expand production capacity up to 12,000 units per year when needed, that the railroad market will rebound significantly and that a market of over 700 potential customers exists. The Company's products involve detailed proprietary and engineering knowledge and specific customer adoption criteria, hence factors that could cause actual results to be materially different include that we may be unsuccessful in raising any additional capital needs that may arise; we may not have sufficient capital to develop, produce and deliver new orders; orders that are placed may be cancelled; product may not perform as well as expected; markets may not develop as quickly as anticipated or at all; or that the productive capacity of Kelso may not be large enough to handle market demand. Further, we are reliant on certain key employees who may leave the Company and we may be unable to protect or defend our intellectual property. Investors are cautioned against placing undue reliance on forward-looking statements. We assume no responsibility to update these forward looking statements except to the extent required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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